Why this matters: For homebuyers looking to make the largest financial decision of their lives, CIDs need to provide an adequate look into their future financial responsibilities. New legislation increases the transparency for important load-bearing structures and the inspections that review them.
Get the report to the buyer before they make an offer
To boost safety and transparency, potential new owners buying into common interest developments (CIDs) are given reports by the seller or the seller agent on the elevated elements that make up their potential new home.
Senate Bill 410 expands the disclosures set out by the Davis-Stirling Common Interest Development Act back in 2020 when inspections of elevated elements are obtained by CID boards, at least once every nine years. [CC §5551(b)(1)]
The term elevated elements refer to load-bearing components and the necessary waterproofing they need for integrity. The elements include any part of the unit the CID is responsible for, besides the exterior walls that play a structural part in the building, such as:
- decks;
- balconies;
- stairways;
- walkways; and
- [CC §5551(a)]
These elements are parts of the CID used every day and are designed to hold humans up. [CC §5551(a)(3)]
This new legislation surrounding the sale of housing units within a CID requires a copy of the inspection report along with the amended billing disclosures form delivered to the buyers. [CC §4528]
This report provides vital information and important context for the scope of the issue, including:
- date of inspection;
- total units;
- total housing units with exterior elevated elements;
- total exterior elevated elements;
- how many exterior elevated elements were inspected;
- how many elements posed an immediate threat to occupant safety;
- how many units were identified as affected by any of those threats; and
- a certificate from the inspector of the visual inspection and evaluation described above. [CC §5551(e)(5)]
When any danger to humans is identified by the inspector, the report is immediately provided to the association and given to law enforcement within 15 days. [CC §5551(g)(1)]
Preventative measures must be taken by the CID immediately, with repairs approved by law enforcement. [CC §5551(g)(1)]
Related article:
CIDs required to perform visual inspections of exterior elements
The overall view
The original legislation required the first inspection of these elevated elements by January 1, 2025. These elements must be inspected by a licensed structural engineer, civil engineer, or architect. [CC §§5551(i); 5551(b)]
The number of load-bearing elements evaluated must be a random and statistically significant sample. There is no cherry-picking what units or features reflect best on the CID. [CC §5551(b)(1)]
Importantly, the disclosures are not limited to the one unit a homebuyer is considering. The report is based on what is happening across all inspected units.
While issues at your neighbor’s home cannot predict every problem a homebuyer is concerned about, owning a unit in a CID means sharing responsibility and oversight with those around you. Arming potential homeowners with the same information already provided to the board about the safety and integrity of housing, just passes along basic load-bearing knowledge.
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